Macroeconomics Answers

how can oligopoly cause market failure

Assume investment spending is very interest inelastic and money demand is very interest elastic. With the help of IS LM diagram explain the effect of cut in income tax rate on investment spending , money demand, and budget surplus and explain the adjustment process from one equilibrium to another

If the fertility rate in Nigeria is very high. How will this affect economic growth and the standard of living?,

difference between “Structural unemployment” and “cyclical (demand deficiency) unemployment”

Use the following information to answer the question below: The demand and supply curves are represented by the following equations: Qd=100-P and Qs=50+P . The equilibrium price is?

Creative destruction is an innovation theory, which was first coined by Austrian economist Joseph Schumpeter in 1942. The theory proposes…

Is zero government intervention economy system is possible or not ?

Define iso - quant and iso- product curve. How do you find the optimum combination point in case of factor- product, factor -factor and product – product relationship? Explain in brief.

Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answer with diagrams. 

a) BNM’s securities traders buy securities in open-market operations. 

b) An increase in credit-card availability reduces the cash people hold.

c) BNM reduces banks’ reserve requirements. 

d) Households decide to hold more money to use for holiday shopping. 

e) A wave of optimism boosts business investment and expands aggregate demand. 

How can an oligopoly cause market failure